Popular blockchain analytics platform Santiment reported that prices in the cryptocurrency market were more fragmented and uncorrelated in April compared to previous months.
According to their analysis, the MVRV (Market Versus Real Value) model confirms that buying several cryptocurrencies such as OMG, SRM, and VIDT during this period may prove to be a good investment. History, while others like BEL, INJ and RNDR can be very dangerous.
source: mood
The cryptocurrency market is very volatile and investors are always looking for suitable opportunities. Sentiment analysis provides valuable insights into market trends and helps investors make informed decisions.
The MVRV model is a popular tool used to analyze the value of cryptocurrencies relative to their real value. It takes the market value of the coin into account and compares it to the true value – the average price at which the coin last moved on the blockchain. The model is used to determine whether a coin is overvalued or undervalued in the current market.
Santiment’s analysis shows that certain types are currently undervalued and may represent good investment opportunities. OMG, SRM, and VIDT have shown historically good trading returns during this phase. On the other hand, however, BEL, INJ, and RNDR are currently considered venture capital.
It is important to note that investing in cryptocurrencies is still a high risk activity. Even with a sophisticated analytical tool like MVRV, there is no guarantee that the investment will yield a positive return. However, such analysis can help investors make informed decisions and reduce risk.
In conclusion, Santiment’s analysis shows that the crypto market is currently as fragmented and uncorrelated as it has been in previous months. The MVRV model confirms that some such as OMG, SRM and VIDT may be good investments now, while others such as BEL, INJ and RNDR will be at risk. As always, investors should do their own research and seek professional advice before making any investment decisions in this volatile market.
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Mingying
according to Kyptos
